Chart: Gold/HUI Ratio

The Gold/HUI Ratio Chart

The Gold/HUI Ratio expresses the price relationship between gold and the HUI Index (NYSE Arca Gold BUGS Index). The chart shows the quantity of HUI indices needed to purchase one ounce of gold in US dollars (USD) since 1997. A high ratio indicates that gold is relatively expensive in terms of the HUI Index and vice versa.

Analysis of the Gold/HUI Ratio Chart

The Gold/HUI Ratio rises sharply during recessions, for example, as was the case in the late 2000s, mid-2008, and March 2020. This can be attributed to the relative outperformance of gold, during recessions, versus the broader equity market, which includes gold miners. In addition, the ratio was usually high when gold bullion approached a longer-term low, a situation that occurred in early 2001 and late 2015.